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4 <br /> Contract to Audit Accounts (cont.) Orange County, North Carolina <br /> Primary Governmental Unit <br /> not applicable <br /> Discretely Presented Component Units (DPCU)if applicable <br /> 11. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report <br /> shall include, but not be limited to, the following information: (a) Management's Discussion and Analysis, (b) the <br /> financial statements and notes of the Governmental Unit and all of its component units prepared in accordance with <br /> GAAP, (c) supplementary information requested by the client or required for full disclosure under the law, and (d) <br /> the Auditor's opinion on the material presented. The Auditor shall furnish the required number of copies of the <br /> report of audit to the Governing Board as soon as practical after the close of the accounting period. <br /> 12. If the audit faro is required by the NC CPA Board or the Secretary of the LGC to have a pre-issuance review of their <br /> audit work, there must be a statement added to the engagement letter specifying the pre-issuance review including a <br /> statement that the Governmental Unit will not be billed for the pre-issuance review. The pre-issuance review must <br /> be performed prior to the completed audit being submitted to the LGC. The pre-issuance report must accompany <br /> the audit report upon submission to the LGC. <br /> 13. The Auditor shall electronically submit the report of audit to the LGC as a text-based PDF file when (or prior to) <br /> submitting the invoice for services rendered. The report of audit, as filed with the Secretary of the LGC,becomes a <br /> matter of public record for inspection, review and copy in the offices of the SLGFD by any interested parties. Any <br /> subsequent revisions to these reports must be sent to the Secretary of the LGC. These audited financial statements, <br /> excluding the Auditors' opinion, may be used in the preparation of official statements for debt offerings, by <br /> municipal bond rating services to fulfill secondary market disclosure requirements of the Securities and Exchange <br /> Commission and other lawful purposes of the Governmental Unit without subsequent consent of the Auditor. If <br /> it is determined by the LGC that corrections need to be made to the Governmental Unit's financial statements, <br /> they should be provided within three days of notification unless another time frame is agreed to by the LGC. <br /> If the OSA designates certain programs to be audited as major programs, as discussed in item #2, a turnaround <br /> document and a representation letter addressed to the OSA shall be submitted to the LGC. <br /> The LGC's process for submitting contracts, audit reports and invoices is subject to change. Auditors should use the <br /> submission process in effect at the time of submission. The most current instructions will be found on our website: <br /> https://www.nctreasurer.com/slg/Pages/Audit-Forms-and-Resources.aspx <br /> 14. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than necessary <br /> under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such <br /> additional investigation and the additional compensation required therefore. Upon approval by the Secretary of the <br /> LGC, this contract may be varied or changed to include the increased time and/or compensation as may be agreed <br /> upon by the Governing Board and the Auditor <br /> 15. If an approved contract needs to be varied or changed for any reason, the change must be made in writing, <br /> on theAmended LGC-205 contract form and pre-audited if the change includes a change in audit fee. This <br /> amended contract needs to be completed in full, including a written explanation of the change, signed and dated by <br /> all original parties to the contract, and then must be submitted through the audit contract portal to the Secretary of <br /> the LGC for approval. The portal address to upload your amended contract is http://nctreasurer.slgfd.leapfile.net <br /> No change shall be effective unless approved by the Secretary of the LGC,the Governing Board,and the Auditor. <br /> 16. A copy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit <br /> should be attached to the contract, and by reference here becomes part of the contract. In case of conflict between. <br /> the terms of the engagement letter and the terms of this contract,the terms of this contract will control.Engagement <br /> letter terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are <br /> specifically deleted in Item #25 of this contract. Engagement letters containing indemnification clauses will <br /> not be approved by the LGC. <br /> Page 3 of 8 <br />