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<br />LGC-205 (Rev. i/112006)
<br />FRe in Triplicate.
<br />~ ~ 23th
<br />CONTRACT TO AUDIT ACCOUNTS
<br />of Orange Conniy, North Cazolina
<br />Gover®earal Uai[
<br />~y of April 2007 McGladrey & Pullen, I.L1'
<br />P. O. Box 2470, Greensboro, NC 27402-2470 Anartnr
<br />Mnrlmg Address
<br />hereinaSer referred to as
<br />the Auditor, and the Commissioners o f Orange Colmty, NC hereinafter refeued
<br />Governing Board Governmental Unit
<br />to as the Crovemmental 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 tha Gover~ental Unit for the period beginning
<br />Jury 1 2006 and ending Sune 30 2007 .The, management's discussion and analysis,
<br />non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the
<br />audit of the basic financial statements and an opinion wiIl be rendered in mlation to (as applicable) the governmental activities, the
<br />business-type activities, the aggregate discretely presented component units, each major governmental and enterprise fiord, and the
<br />aggregate remaining fund information (nonmajor government and enterprise fiords, the internal service fund type, and tha fiduciary
<br />fund types).
<br />2. At a minimum, the Auditor shall conduct his audit and render his report in accordance with generally accepted auditing standards:
<br />The Auditor shall perform the audit in accordance with Government Avditine Standards if required by the 9tata Single Audit
<br />hnplementation Act, as codified in G.S. 159-34. If requited by OMB Circular A-133 and the State Single Audit Implementation
<br />Ant, the auditor shall perform a Single Audit
<br />3. This contract contemplates an unqual~ed opinion being rendered. If financial statements are not prepared in accordance with
<br />generally accepted accounting principles (GAAP), or the statements fa>7 to include all disclosures required by GAAP, explain that
<br />departure from GAAP in the space below:
<br />No deparhues are contemplated
<br />4. This contract contemplates an unqual~ed opinion being rendered. The audit shall include such tests of the accounting records and
<br />such ether auditing gmcedurrs as are considered by the Auditor to be necessary in the churmtsiances. rltry limitations or
<br />restrictions in scope which would lead to a goal fr~tian should be fully explained in an attachment to this contrncr. The audit will
<br />have no scope limitations except:
<br />No limitations are contemphtted.
<br />5. If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, issued by the
<br />ComptroIler General of the United States, then the Auditor warrants by accepting this engagement that he/she has met the
<br />requirements For a peer review and continrimg education as specified in Government Auditing Standards. The Auditor agrees to
<br />provide a copy of their most recent peer review report to the Governmental Unit and the Secretary of the Local Government
<br />Commission prior to the execution of the audit contrack (Sea Item 20.)
<br />6. It is agreed that lima is of the essence in this contrack All audits are to be performed and the report of audit submitted by
<br />October 31 2007
<br />7. It is agreed that generally accepted auditing standards include a review of the Governmental Unit's system of internal control and
<br />accosting as same relates to acceuntability 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 recommendntfons for impmvemenk That written report must include all matters defined as
<br />"reportable conditions" fn AU 325 of the AICPA Professional Standards. The Auditor shall file a copy of that report with the
<br />Secretary of Ore Loral Government Commission.
<br />8. All IoCal government. and public authority contracts far annual or special audits, bookkeeping or oOrer assistance necessary to
<br />prepare Ore Unit's records for audit, financial statement preparation, any finance-related investigations, or any oOer 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 Ore Governmental Unit untitOre invoice bas been acamved by the
<br />Secretary of the Local Government Commission. (This also includes any empress biliinps.l [G.S. 159-34 and 115C-447] All
<br />invoices should be submitted in triplicate to Ore Secretary of the Local Government Commission. The original and one copy will
<br />be returned to the Auditor. Approval is not required an contracts and 'invoices for system improvements and similar services of a
<br />non-auditing nalm'e.
<br />9. In consideration of the satisfactory performance of the provisions of this agreement, the Gover~ental Unit shell )ray to tha
<br />Auditor, upon approval by the Secretary of rho Local Government Commission, Ore following which includes arty cost the
<br />Auditor may incur from work paper or peer reviews or any other quality assurance program regrdred by third parties (Federal and
<br />State grantor and oversight agencies or oOer organizations) as required under Ora Federal and State Single Audit Acks:
<br />Year-end bookkeeping assistance - [For audits subject to Government AudrtingStandards, t/ds is limited to bookkeeping
<br />services permitted byrerdsedlndependenceStandards] NOS"~'^~D.~°~`tl"~~`~r°~6r'°p1s00~`aCVO'~~"~r'°`~`
<br />.r~,oooramecaa~~m.ssoinr~raxs~uera(~~remmmm~c~,r~cu. kn ~~~ i~woa~w,o,ero~<~~e~s~~nxmv„rmsaaoaea~.
<br />Audit -
<br />Preparation of the financial statements -s+.yvara<me wrn~~ arxaeawes orpA~ay~,~tvunw rorukTe,~orcmrd tor. Cm,bmn ~r trnr:n~en.
<br />10. After completing his audit, the Auditor shall submit to the Governing Board a written mport of audik This mport shall include, at
<br />least, Management's Discussion and Analysis, the financial statements of the governmental unit and aIl of its component units and
<br />notes Orereto prepared in accordance wiOr generally accepted accounting principles, combining and supplementary information
<br />requested by Ore client or requtred for fitll disclosure under Ore law, and the Auditor's opinion on the malarial presented. The
<br />Auditor shall furnish Ore requaed mrmber of copies of the mport of audit to Ore Governing Board as soon as practical after the
<br />close of Oie accounting period.
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